Chapter 3 Section 3 pp 69-72 Other Organizations and Institutions

Non Profit Organizations Cooperative Associations Labor Unions This section discusses the role of other types of organizations in the economic system: Non Profit Organizations Cooperative Associations Consumer, Producer, Service Labor Unions Professional and Business Organizations Government

NON PROFIT ORGANIZATION Definition: work like business organizations to use resources wisely, but goal is not profit; goal is CHARITY or some other good deed Examples: US Marine Toys for Tots Churches Hospitals

CONSUMER COOPERATIVE Definition: Voluntary group that buys goods in bulk on behalf of its members, to offer them for sale at lower prices Examples: Sam’s Club Costco

SERVICE COOPERATIVE Definition: Voluntary group that buys services in bulk on behalf of its members, to offer them for sale at lower prices Examples: Credit Union, like a bank (fewer fees for services, better loan interest rates) Insurance Cooperatives

PRODUCER COOPERATIVE Definition: Voluntary group that helps members sell its products; by joining with other producers, the co-op can better market their product Examples: Farming Coop – Ocean Spray Sunkist Orange Juice

LABOR UNION Definition: works for members’ interests on issues like wages, working hours, benefits, and any job related matter. Unions collectively bargain for labor contracts. Examples: Carpenters, Teachers, Nurses, Autoworkers, etc.

PROFESSIONAL & BUSINESS ORGANIZATIONS Professional Associations – group of people in the same job who get together to discuss issues in their profession. Example: American Medical Association Business Associations – group of people to promote the interests on the local, state or national business community. Example: Chamber of Commerce

GOVERNMENT Direct Role: Some government agencies provide goods and services to people directly, like public schools, police and fire services, parks, libraries, etc. Indirect Role: Sometime the government acts like a referee regulating the relationship between consumers and producers; other time the government funds programs like Social Security or veterans benefits. These are indirect influences in the economy.